EC372-6-SP-CO:
Economics of Bond and Derivatives Markets
2017/18
Economics
Colchester Campus
Spring
Undergraduate: Level 6
Current
Monday 15 January 2018
Friday 23 March 2018
15
31 July 2002
Requisites for this module
(EC115 or BE300 or IA156 or MA101) and EC202
(none)
(none)
(none)
(none)
BA 5A84 Financial Economics (Including Placement Year),
BA L111 Financial Economics,
BA L118 Financial Economics (Including Foundation Year),
BA L195 Financial Economics (Including Year Abroad),
BSC 0Q64 Financial Economics (Including Placement Year),
BSC L114 Financial Economics,
BSC L117 Financial Economics (Including Foundation Year),
BSC L194 Financial Economics (Including Year Abroad),
BA L147 Financial Economics and Accounting (Including Placement Year),
BA L148 Financial Economics and Accounting,
BA L149 Financial Economics and Accounting (Including Year Abroad)
This module begins with a study of the distinctive characteristics of bonds as financial assets, and thus to explanations of the term structure of interest rates. Much of the remainder of the module is then devoted to studying derivatives markets, focusing on futures and options markets. Futures contracts are analysed both in principle and with applications to commodity markets as well as financial futures markets. Option contracts are studied from the perspective of relationships between option premiums and underlying asset prices, together with an exploration of the ways in which option contracts can be used to achieve specific financial objectives. Markets for various types of swaps including currency swaps, interest rate swaps and credit default swaps are then examined. Finally, the module explores theories of financial intermediation, with particular reference to determining the proportion of investment funded indirectly via intermediaries loans rather than directly via bond issuance.
Upon successful completion of this course students will have acquired an appreciation of how economic reasoning can be applied to the markets for bonds, futures contracts and financial options. They will also be able conceptualise the fundamentals of financial derivatives in economic terms and evaluate simple models of price determination based on the arbitrage principle.
Academic skills. EC372 contributes to the development of i problem solving, via the analysis of formal models of bonds, futures and options markets ii evaluation of empirical applications, in particular, notable case studies involving financial derivatives contracts iii communication and literacy, via term paper preparation; and iv research and information gathering, via the identification, selection and acquisition of materials relevant for term papers and for examination preparation.
Other employability skills include the development of i awareness of the operation of bond and derivatives markets in advanced economies ii clear, concise and well organised professional written work iii personal time management, target-setting to achieve the timely completion of term papers and other and other reading assignments, and iii reflection on and response to feedback provided for term papers.
No information available.
No information available.
Students who enrol for EC372 are recommended to have taken EC371 (or equivalent).
Compulsory for:
Year 3 Students on BA in Financial Economics and BSc in Financial Economics
2 lectures and one (optional) class per week in one term
This module does not appear to have a published bibliography.
Assessment items, weightings and deadlines
| Coursework / exam |
Description |
Deadline |
Coursework weighting |
| Coursework |
EC372 Assignment |
|
|
| Exam |
Main exam: 120 minutes during Summer (Main Period)
|
Exam format definitions
- Remote, open book: Your exam will take place remotely via an online learning platform. You may refer to any physical or electronic materials during the exam.
- In-person, open book: Your exam will take place on campus under invigilation. You may refer to any physical materials such as paper study notes or a textbook during the exam. Electronic devices may not be used in the exam.
- In-person, open book (restricted): The exam will take place on campus under invigilation. You may refer only to specific physical materials such as a named textbook during the exam. Permitted materials will be specified by your department. Electronic devices may not be used in the exam.
- In-person, closed book: The exam will take place on campus under invigilation. You may not refer to any physical materials or electronic devices during the exam. There may be times when a paper dictionary,
for example, may be permitted in an otherwise closed book exam. Any exceptions will be specified by your department.
Your department will provide further guidance before your exams.
Overall assessment
Reassessment
Module supervisor and teaching staff
Mr Roy Bailey, email: rbailey@essex.ac.uk.
Mr Roy Bailey
For further information, send an email message to ueco@essex.ac.uk.
Yes
Yes
No
Prof Aditya Goenka
The University of Birmingham
Chair
Available via Moodle
Of 32 hours, 32 (100%) hours available to students:
0 hours not recorded due to service coverage or fault;
0 hours not recorded due to opt-out by lecturer(s).
Economics
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